A federal judge who formerly served within the San Diego County Superior Court has granted preliminary approval of an $80 million class action settlement against Protective Life Insurance Company.
The lawsuit alleges that Protective Life Insurance Company violated California law through failing to provide policyholders notice and a grace period before terminating their life insurance, marking one of the largest settlements against a life insurance company for these violations.
While the settlement still awaits final approval, which is scheduled for Oct. 24, its terms are set to provide not only financial compensation but also force an industry-wide understanding that these consumer protections must be followed.
Through “injunctive relief,” Protective Life must implement proper procedures to comply with California law, to ensure that current and future policyholders receive the full protection of the law. The $80 million settlement fund will serve as “damages relief” by providing compensation to class members whose policies were improperly terminated or who were denied benefits.
“Our goal from the beginning has been to secure relief for those impacted while holding the company accountable. This settlement does just that. It offers meaningful compensation and ensures these harmful practices are addressed,” Michelle Meyers, partner at Singleton Schreiber, who served as one of the lead attorneys on the case, said.
The Morneau v. Protective Life Insurance Company case came about in 2022 after plaintiffs Cristin Morneau and Kelly Strange found that their mother’s life insurance had been terminated in 2017 without notice after she missed a payment. They then teamed up with others who had been in a similar circumstance and brought the class action suit to court.
After reaching an agreed settlement in October 2024, the preliminary approval offered by Thomas J. Whelan of the U.S. District Court for the Southern District of California marks the final stretch of the settlement.
